Last updated in July 2022.
What is Afranga?
- Owned and run by a well-established, profitable financial firm
- Payday and medium-term instalment loans secured with a buyback guarantee
- High advertised returns (up to 18%); no loan performance statistics published
Who is Behind Afranga?
Afranga is owned and run by StikCredit - a Bulgarian consumer finance company which has operated since 2013. At Afranga, investors re-purchase loans originated by StikCredit.
In 2020, the company raised €160,000 via an equity crowdfunding round on Seedrs. It has retained stable profits over the years - according to unaudited financial statements, StikCredit reached a net profit of BGN 5.1m in 2021 (approx. €2.6m), up from BGN 4.6m (roughly €2.3m).
Afranga's Investment Product
Afranga offers two types of personal loans:
- Payday loans of €50-€400 that last from 5 to 30 days and involve a single repayment at maturity, and
- Instalment loans, granted for between €100 and €2,500 and last 3 to 24 months. They are repaid at equal monthly instalments.
All loans are covered with a 60-day buyback guarantee.
Afranga doesn’t offer an auto-invest feature or early exit options.
How Much Can You Earn?
Afranga advertises annual returns of up to 18%. However, no loan performance statistics are available. According to Afranga’s COO, investors can expect real returns of 16.8% per year, which is the interest rate on most loans.
Investors don’t incur any fees, and the borrower fee structure is undisclosed.
Afranga is a relatively new platform. In an interview with P2PMarketData, Afranga COO – Yonko Chuklev, tells us about their ambitions for the future:
We have bold plans to grow Afranga into becoming one of the leading European P2P marketplaces by adding a number of selected loan originating companies and developing a diversified portfolio of loan products. I would say we consider as competition large established platforms operating in the personal loan asset class with assets under management of EUR 50+ million.